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Employers

Employer Bulletin

All Employers
Vol. 17, No. 12
May 19, 2000

1999 Wisconsin Act 11 Video and Effect on Late Reported Earnings and Participant Toll Free Number

The Department of Employe Trust Funds (ETF) is set to distribute a new VHS video that reviews the new retirement benefit law and its impact on Wisconsin Retirement System (WRS) benefits. The video, 1999 Wisconsin Act 11 and Your Wisconsin Retirement System Benefits, was written and produced by ETF's Office of Communications. The Department will distribute one copy of the program to each WRS employer agent. You can expect to receive your copy soon.

The law provides several changes to WRS benefits and will affect all WRS members, whether "inactive," retired, or currently working. We encourage you to review the program first and then schedule screenings with all employes so that everyone becomes more familiar with the provisions of Act 11 and how the law could impact them individually.

As of this writing, the Wisconsin Supreme Court's temporary injunction on the implementation of Act 11 is still in place.

The 22-minute program covers the following topics:

  • The size and scope of the WRS
  • WRS funding sources
  • How benefit changes under Act 11 will be funded
  • The impact of Act 11 on WRS funding sources
  • The impact of Act 11 on WRS Separation, Retirement, Disability, and Survivor benefits
  • Where and how to learn more about Wisconsin Act 11

All WRS employers will receive one VHS copy of the program but are free to duplicate as many copies as needed. For more information about the 1999 Wisconsin Act 11 and Your Wisconsin Retirement System Benefits video, contact Nancy Ketterhagen, ETF Office of Communica-tions, at (608) 266-7471 or e-mail questions to nancy.ketterhagen@etf.state.wi.us.

1999 Wisconsin Act 11 Implementation Could Affect How Much You Pay for Effective Rate Interest on Late Reported Earnings

1999 Wisconsin Act 11 provisions include a $4 billion distribution from the Transaction Amortization Account (TAA) that would have the impact of increasing the fixed effective rate. The fixed effective rate is used to determine the amount of interest charged on late reported earnings (i.e., earnings that were not reported in the year when the earnings would normally have been paid).

ETF estimates that the $4 billion TAA transfer will increase the 1999 fixed effective rate by roughly 10% above the already credited 13.5%. This means employers may pay additional interest on contributions for late reported earnings.

Due to the temporary injunction delaying implementation of 1999 Wisconsin Act 11, processing changes required as a result of WI Act 11 cannot be completed. This prevents ETF from processing late reported earnings reports and from producing invoices for the contributions and interest due.

Once the court rules on the constitutionality of Wisconsin Act 11 and/or lifts the injunction, ETF will begin producing invoices. The date ETF receives your Employe Transaction Report (ET-2533) determines the date to which interest is assessed. Even though ETF may not be able to process your late reported earnings until sometime in the future, you will only be billed for the interest due up through the date ETF received your report.

Additional information about the new law is found on ETF's web site at etf.wi.gov.

Please direct questions to the Employer Communication Center at (608) 264-7900.

New Participant Toll-Free Customer Service Telephone Line

ETF is pleased to announce a new toll-free customer service telephone line for employes participating in benefit programs administered by ETF. Please post the attached page for your employes. Employers should continue using the Employer Communication Center for employer-related inquiries. The Employer Communication Center telephone number is (608) 264-7900.

ETF Announces New Toll-Free
Customer Service Telephone Line

The Department of Employe Trust Funds is pleased to announce the availability of a new toll-free customer service telephone number. Participants can speak with a benefits specialist toll free by dialing 1-877-533-5020. The toll free number is good anywhere in the USA. The local Madison number is (608) 266-3285. ETF's self-service telephone lines continue to be available.

Toll Free Customer Service: 1-877-533-5020

Telephone Message Center: 1-800-991-5540

Local Madison: 264-6633

Listen to more than 100 messages related to WRS benefits.

Toll Free Self-Service Line: 1-877-383-1888

For forms and brochures, tax withholding changes and annuitant home address changes.

 

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